560-7-5-.02 Accounting Periods and Basis of Net Income.

(1) The return of a taxpayer shall be made and the person's income computed for the person's taxable year, which means the fiscal year, or the calendar year if the person has not established a fiscal year. For purposes of this regulation, "person" means the same as is defined in O.C.G.A. § 48-1-2. The term fiscal year means an accounting period of 12 months ending on the last day of any month other than December. No fiscal year will be recognized unless before its close it was definitely established as an accounting period by the taxpayer and the books of such taxpayer were kept in accordance therewith. A person having no such fiscal year must make the person's return on the basis of the calendar year. The annual accounting period constituting a taxable year shall in no case be a period longer than 12 months. (2) It is recognized that no uniform method of accounting can be prescribed for all taxpayers, and the law contemplates that each taxpayer shall adopt such forms and systems of accounting as are in the person's judgment best suited to the person's purpose. Each taxpayer is required by law to make a return of the person's true income. The person must, therefore, maintain such accounting records as will enable the person to do so. (3) The taxable year of a person shall be the same as the person's taxable year for Federal income tax purposes. (4) A person's method of accounting must be the same for Georgia income tax purposes as for Federal income tax purposes. If the person is allowed or is required to change an accounting method for Federal income tax purposes, such accounting method for Georgia will automatically be changed. Authority: O.C.G.A. § 48-2-12. History. Original Rule was filed on June 30, 1965. Amended: Filed December 12, 1969; effective December 31, 1969. Amended: F. Dec. 7, 2021; eff. Dec. 27, 2021. Subject 560-7-6. ELECTIONS AND DEFINITIONS. Rule 560-7-6-.01. Elections.Amended. Elections under the Internal Revenue Code which individuals make shall likewise be recognized for Georgia income tax purposes. The time and manner of making each respective election as specified by the Internal Revenue Code and the Federal regulations thereunder are recognized by Georgia. (a) An exception to the general rule that the filing status of the Federal return, whether joint or separate, determines the filing status on the Georgia return is made if either husband or wife is a resident and the other is a non-resident with no Georgia income, or if husband and wife are non-residents with one having Georgia income. Such taxpayers shall file separate income tax returns in this State, in which event their tax liabilities shall be separate; each shall be entitled to only their own personal exemption, credit for dependent(s) other than spouse and personal deductions, and they shall compute their tax based upon married filing separate status. Authority: Ga. Code Ann. Secs. 92-3005, 92-3006, 92-8405, 92-8406, 92-8409, 92-8427. History. Original Rule entitled "Deductions from Gross Income" adopted. F. and eff. June 30, 1965. Amended: F. May 25, 1966; eff. June 13, 1966. Amended: F. Aug. 4, 1966; eff. Aug. 24, 1966. Amended: F. Jan. 11, 1971; eff. Jan. 31, 1971. Repealed: New Rule entitled "Elections" adopted. F. Feb. 16, 1972; eff. Mar. 7, 1972.